With no thanks to the Minnesota DFL...

Minnesota tax burden is no longer in top 10

It's the first time since 1981 that taxes in the state and spending have ranked so low.

By Mark Brunswick, Star Tribune

For the first time in about 25 years, Minnesota has dropped out of the top 10 in per capita tax rankings, according to an analysis of U.S. Census Bureau data, and now stands 12th in the nation in state and local taxes as well as in spending.

But when taxes and spending are measured as a percentage of personal income, the numbers really nosedive. By that measure, the state has fallen to 23rd in taxes and 31st in state and local government spending, according to the report from the Minnesota Center for Public Finance Research, an arm of the nonpartisan Minnesota Taxpayers Association.

The numbers reflect years of Gov. Tim Pawlenty's no-tax-increase policies and budget cuts, but they also show that local government appears to have remained in check as well.

For nearly three decades, Minnesota has almost always been in the top 10 in most bottom-line measures of tax burden. This is the first time since 1979 that it has dropped out of the top 10 in spending per person by state and local governments and the first time since 1981 that it has dropped from the top 10 in taxes per capita.

Very welcome news indeed, and the folks at the Star Sickle & Diaper had to have had a coniption writing that piece.

Trying to shed the label

Governors in all three major parties in Minnesota, going back to DFLer Rudy Perpich, have made a goal of escaping the tag of top 10 tax status.

One would not have known that, given the proclivities of the past DFL-led legislature.

The report released Monday shows that efforts by Pawlenty to change the tax burden have had an impact.

Lynn Reed, executive director of the Taxpayers Association -- which is not affiliated with the conservative Minnesota Taxpayers League (wouldn't you know that they would have to throw that in--ed) -- said that the figures show that incomes remain strong in Minnesota, but that it might be difficult to sustain the kind of growth the state has seen. While taxes per capita have dropped, they remain in the top tier nationwide.

Minnesota's change in the rankings also is a reflection of actions by other states. "We've dropped because other states did raise taxes during their budget crunch and generally we didn't," Reed said.

In other words, other states who were taken over during the 2006 democrat hiccup were not so fortunate to have a steadfast governor and a willing minority party to keep things in check.

And of course, the wailing and gnashing of teeth have begun:

A number of groups have said the tax decline already has been accompanied by declining graduation rates, slumping income growth, traffic congestion, increased poverty and fewer people with health insurance.

"All through the period when we ranked higher in public investment, Minnesota actually was gaining on other states in income growth and quality-of-life rankings," said Dane Smith, president of Growth and Justice, a public policy research group that advocates for more progressive tax policies. "This is unknown territory for Minnesota, and it's not good for our state and our proud tradition of shared prosperity."

Translation: Dammit! Minnesota is a proud SOCIALIST state! Quality of life can only be measured via government programs! Now, thanks to Pawlenty and those evil Republicans, we're moving away from socialism--and that makes us scared!

Quick question: Why is a "progressive" tax, a tax that by its very definition punishes achievement, productivity, and therefore, progress, called, "progressive"?

But I digress.